Construction Law/demobilization

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Question
If the Client requests that the Contractor be demobilized from site till further notice before the project is completed due to lack of funds, what are the implications to the Client and the Contract as a whole

Answer
Hi Toks
It depends on the period of demobilisation - which is the same as a suspension of the works.
It also depends on what it says in the contract.
If after a described period of time - usually 3 months of suspension - the contractor can terminate the contract and the client has to pay all the contractor's costs up to that point.
The problem is that if the client has no money then there is not much point in spending more on a court case to get nothing back.
Look for parent company guarantees to cover the loss.
Otherwise tough luck.
Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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